I'm unfamiliar with Limited Run, do they properly license all the music and art they sell?

They are a publishing company, so I would assume so. They publish physical copies of PS Vita games that were only previously released digitally and publish physical albums to soundtracks that were also only released digitally.

They are also a part of Mighty Rabbit Studios, a game development company.

This is really silly. I would be surprised if you could visually see a difference between a lossless and a 128k waveform zoomed out like that side by side with non-dynamic material. They don't understand your question on Twitter because it's silly and makes no sense.

the best proof is probably to check the frequencies on the spectrogram, since encoding MP3 at 128kbps does a hard lowpass at 16kHz. and it actually does seem that the CD audio was lowpassed (and some extra noise added on top). recording straight from game boy to audio interface at 44.1kHz will show frequencies all the way up to 22kHz

it could easily have been interpreted as "is this cd a with mp3 files on it" -- you know, mp3-cds, those things that were a big deal in car audio in 2004. this makes sense given their answer which is basically, "no, it's an audio cd" - which is true

not saying i think pressing a cd with lossy audio and selling it is particularly cool but i think there is plenty of potential for them to have answered that tweet honestly and in good faith